Philippines share prices closed 0.47 percent lower on Wednesday as high oil prices scared off investors with the prospect of lower corporate profits and slower economic growth, dealers said.
Although oil was easier overnight, it picked up again in Asian trade as Israel launched new attacks into Lebanon amid concerns over a possible widening of the Middle East conflict, they said.
The composite index fell 10.21 points to 2,181.57 after trading between 2,178.61 and 2,198.06. Volume was light at 809.5 million shares worth 585.8 million pesos (11.12 million dollars).
The broader all-shares index fell 6.21 points to 1,365.74. Losers led gainers 42 to 20, with 59 stocks unchanged. The peso was at 52.657 to the dollar. "There is an air of cautiousness which will likely remain as investors wait for a resolution of the stand-off in the Middle East," said Mark Alan Canizares of CitisecOnline.com.
Dealers expect risk-averse investors to remain sidelined amid the geo-political worries but there may be some bargain hunting, especially those companies that are expected to report strong earnings for the second quarter. Philippine Long Distance Telephone was the top-traded stock, ending down 15 pesos at 1,825.
Ayala Land gained 25 centavos to 12.25 pesos while parent Ayala Corp fell five pesos to 380. Meralco A shares, restricted to local investors, were down 25 centavos at 14.75 pesos. Meralco B shares, which foreigners and locals can buy, retreated 25 centavos to 24 pesos. San Miguel A shares were unchanged at 66 pesos but it B shares were up 50 centavos to 71 pesos.